Understand How the Minimum Wage Works in the United States in 2025

Many Brazilians planning to move to the United States face the same question: what is the minimum wage in the United States? The answer is not as straightforward as here in Brazil, where there is a single national value. There, the system is decentralized: the federal minimum wage has been $7.25 per hour since 2009, but each state, municipality, and even cities can set their own rules. The result? A worker can earn between $7.25 and $17.50 per hour depending on where they are working.

The Reality of the Minimum Wage in the United States

The American federal minimum wage has remained frozen at $7.25 per hour for over 15 years. However, this is only a floor — many states have adopted much higher values, ranging from $11 to $16 per hour. In large cities like New York, Los Angeles, and Seattle, where the cost of living is extremely high, the rates are even higher.

Considering a standard workweek of (40 hours per week), the calculation looks like this:

$7.25 × 40 hours × 4 weeks = $1,160 monthly

This is the federal base amount. However, in states like Washington DC, the minimum wage reaches $17.50 per hour, resulting in a monthly income of approximately $2,800.

How Much Does a Worker Earn? Variations by State

The minimum wage in the United States varies quite a bit depending on the location:

Top highlights:

• Washington DC: $17.50/h (highest in the country)
• Washington: $16.66/h
• California: $16.50/h
• New York: $15.50 to $16.50/h (varies by region)

Bottom highlights:

• Georgia and Wyoming: $5.15/h (but the federal floor prevails)

Converting to reais (considering an exchange rate of approximately R$ 5.20 per dollar) shows that the American federal minimum wage is about R$ 6,032 per month, while in Washington DC, this amount exceeds R$ 14,560.

Who Receives the Minimum Wage?

The minimum wage in the United States applies to:

• Workers aged 14 and above
• Employees on regular work schedules
• Professionals who do not receive tips as their main compensation
• Those not enrolled in apprenticeship programs

The most affected professionals include restaurant attendants, cashiers, stock clerks, general assistants, and supermarket employees. An important note: waiters and waitresses usually receive a lower base salary because tips supplement their income.

Calculating Your Monthly Income

The calculation process is simple, as it is based on hours worked:

Weekly: Hourly wage × 40 hours = weekly amount

Monthly: Hourly wage × 160 hours (40 × 4 weeks) = monthly amount

Practical example with the federal minimum wage:

• Weekly: $7.25 × 40 = $290
• Monthly: $7.25 × 160 = $1,160

In states with higher floors, this figure exceeds $2,500 per month.

Brazil x United States Comparison

A direct comparison between the minimum wage in the United States ($7.25/h federal) and the Brazilian (R$ 1,518 in 2025) requires caution. Converting to reais, the American amount appears four times higher. However, this superficial analysis ignores crucial factors:

Purchasing Power: One dollar in the US buys less than the equivalent in reais in Brazil. The cost of living in the US is significantly higher in almost all categories.

Pricing Model: Brazil has a uniform national minimum wage. The United States adopts a hybrid model, where the federal floor coexists with state and municipal legislation, creating large regional disparities.

Sustainability: The federal minimum wage ($1,160/month) in the US does not cover basic expenses in most states. Average costs indicate:

• Basic cost of living: $1,185/month
• Average rent: $1,626/month

The numbers simply do not add up. States with higher floors offer better income, but their rents are also among the most expensive in the country.

What is the Minimum Wage in the United States? A Practical Conclusion

The American system is complex and fragmented. While the federal floor has remained stagnant for years, states and cities continue approving increases to keep up with inflation and local costs. For Brazilians considering a move, it is essential to research not only the minimum wage in the chosen state but also investigate the local cost of living, rent expenses, and other needs before making any professional or relocation decision.